Do They Mix?: Third Annual Study JANUARY 2016

BUSINESS & POLITICS
DO THEY MIX?
THIRD ANNUAL STUDY
JANUARY 2016
Global StrategyGroup.com
@GSG
Business & Politics: Do They Mix?
Page 2
DO BUSINESS AND POLITICS MIX

IN A TIME OF POLARIZATION?
by a national audience. But in todays highly politicized environment, how are

these corporate stances perceived? Could wading into the political fray put a
corporation at odds with half the country?
Controversy is no stranger to politics. 2015 saw a number of issues polarize

and deadlock Washingtonand the countryon many levels. Entering
into the 2016 presidential election looks to be no different. A handful
of controversial candidates with backgrounds that buck the traditional
presidential candidate pedigree and hardline stances on issues that already
polarize Americans have so far driven the storyline of this election.
This years study examines how brand stances on a range of issues are
perceived differently by Democrats and Republicans and how this affects
brand favorability. What we found has significant implications for corporate
reputation and the approach corporations should take when determining
whether or not to weigh in on political and social issues.
This polarized political environment has created an opportunity for others

to step up and lead on issues of importance. Over the past several years,
corporations have become increasingly more involved in political and social
issuestaking public stances on a variety of issues such as immigration,
minimum wage, same-sex marriage, the environment, and race relations.
Global Strategy Group (GSG) has closely monitored this trend over the past
three years in our annual Business & Politics study, which asks Americans
their opinions about the role that businesses should play in political discourse.
In our third-annual study, we learned that, as in the last two years, the public
still has a clear opinion about how businesses weigh in on political issues, and
the positions they take. Today, Americans are overwhelmingly supportive
of corporate political engagement88 percent of respondents agree that
corporations have the power to influence social change, and 78 percent agree
that companies should take action to address important issues facing society.
(See Figure 1).
As the Presidential campaign captures the nations attention, the sheer quantity
of news coverage will ensure that any corporate stance or response will be heard
Corporations have the power to influence social change

2015
88%
2014
89%
2013
81%
Corporations should take action to address important issues facing society

2015
2014
2013
78%
80%
72%
FIGURE 1
Page 3
POLARIZED POLITICS AND

BRAND PERCEPTION
Not surprisingly, of all the stances we tested, the

most polarizing one involves the most controversial
figure in American politics today: Donald Trump.
In July 2015, the Professional Golf Association (PGA)
moved its Grand Slam of Golf from Donald Trumps
golf course following Trumps controversial comments
calling Mexican immigrants rapists and killers.
The publics reaction to the PGAs decision is split.
The PGAs stance scores highly with Democrats
(improving the PGA brand by 28 points), but does
poorly among Republicans (hurting the PGA brand
by 27 points). That produces a polarization score of
55the highest of any position we tested.
Same-sex Marriage
Confederate Flag
Most polarizing
Trump/Immigration
-27
-30
+28
51
-43
+21
51
+8
-6
Big Game Trophy Hunting
42
-19
LGBT Equality
-24
Confederate Flag
+36
42
+23
42
-26
Race Relations
DEMOCRATS
55
+18
42
+16
+23
Parental Leave
-33
Gender Neutral Products
23
22
+37
Climate Change
-2
Minimum Wage
17
+8
Interracial Families
14
Smoking and Tobacco Use
Negative Brand Impact
+24
13
+33
11
+32
+25
STEM Education
+52
+22
+34
GMOs in Food
Domestic Violence
15
+15
Minimum Wage
Environmental Issues
+45
-10
Least polarizing
With all eyes on the race for the White House,

we took a look at how the divisions in the electorate
intersect with stances corporations take. We tested
the impact on their respective brands of nearly 20
different stances taken by companies in the past year.
The amount to which the impact is different between
Democrats and Republicans, we call the GSG
Polarization Score. The higher the number, the more
polarizing the issue is for the brand.
GSG POLARIZATION
SCORE
REPUBLICANS
+47
+44
+29
+35
+37
+23 I +24
Positive Brand Impact
Please see page 9 for a more complete description of the above stances. FIGURE 2
Page 4
Other hot-button issues follow closely behind. The next most polarizing
stances represent a laundry list of topics that have divided Democrats and
Republicans over the past yearguns, same-sex marriage and LGBT equality,
the Confederate flag and race relations.
response to a big news story (producing a positive brand impact score of

36 points with Democrats). But to some Republicans, it is perceived as an
infringement on the rights of hunters and produces a negative brand impact
score of 6 pointsa 42-point gap between the parties.
Like Trump and the PGA, some of these divisions are obvious. Democrats
and Republicans have distinctly different reactions to Apple CEO Tim Cooks
public denunciation of the Indiana law giving businesses the right to
refuse service to a customer based on their religious beliefsproducing a
polarization score of 51 points.
Meanwhile, some issues that polarize our politicians tend to have a less
polarizing effect when framed by business. For example, IKEAs and
McDonalds positions on the minimum wage are less divisive, as the
distance separating Democrats and Republicans is much smaller. This is
in part because the minimum wage is a less polarizing issue among the
public. But it is also because Americans feel it is much more appropriate for
businesses to take positions on economic issues than social issuesespecially
when the issues affect their business. (See Figure 3 below.)
But responses to other stances are more nuanced, like Deltas announcement
that the company would no longer transport big game animal trophies in the
wake of Cecil the Lions death. To those on the Left, this is an appropriate
How appropriate is it for a company to take a stance on each of the following issues?
How appropriate is it for a company to take a stance on each of the following issues?
Domestic Violence
Confederate Flag
Abortion
LGBT Equality
Obamacare
Trump/
Immigration;
Interracial
families
Race Relations
Climate Change
Minimum Wage;
Pay Equality
Economic
Issues
Democrats and Republicans who
35
40
Legalizing
Marijuana
45
50
Gun Control
Big Game Hunting;

Transgender Issues
55
60
65
Police Body Cameras
Other Issues
70
75
80
IndustrySpecific
Issues
85
90
% found type of stance appropriate
Political Issues
that Affect Business
Parental Leave
Economic Issues
FIGURE 3
Page 5
VISUALIZING CORPORATE POLARIZATION
NASCAR (Confederate Flag)

Republicans and Democrats are divided
Exploring Polarizing Stances
Exploring Non-Polarizing Stances
The decision facing businesses like Amazon and NASCAR about the
Confederate Flag last year epitomized the challenges businesses face
when navigating politics in a polarized era. The issue struck at the core
of race, politics, guns, and regionalism in America. NASCARs attempt
to thread the needlethey prevented the use of the flag in official
capacities but still allowed fans to fly it on their ownstill polarizes the
public. Just 41% of Republicans find the stance appropriate versus 69%
of Democrats. Apples stance on same-sex marriage and the PGAs
stance on immigration are likewise polarizing amongst Democrats
and Republicans.
Pfizer recently committed to a 60% to 80% reduction in their

greenhouse gas emissions by 2050. Given the contentious political
debate around climate change, the fascinating finding here is that
Pfizers stance does NOT polarize the public. Instead, views among
both Democrats and Republicans are aligned in their positive reaction
towards Pfizer. How did Pfizer accomplish this? They made it about
their internal commitment as opposed to wading into the political
or legislative debate over the issue. Likewise, the public also sees the
connection to their business on the NFLs stance on domestic violence
and CVSs position on smoking and tobacco use, and therefore are not
polarized in their reaction to the brand.
When the two lines peak at different points on the scale it means the parties disagree
on an issuetherefore the issue is polarizing. The chart below shows how Republicans
think NASCARs position was inappropriate (indicated by the peak on the left) and
Democrats think it was appropriate (indicated by the peak on the right).
When the two lines are closer together, it means the two parties align on an issue.
The chart below shows how the Democrats and Republicans agree in their evaluation
of Pfizers position on climate change as both groups find it to be mostly appropriate
(indicated by the lines aligning).
Not Appropiate
Pfizer (Climate Change)
Apple (Same-sex Marriage)

Republicans and Democrats are divided
Appropiate
NFL (Domestic Violence)

Republicans and Democrats are aligned
PGA (Trump/Immigration)
CVS (Smoking and Tobacco Use)

Not Appropiate
Appropiate

Republicans and Democrats are aligned
FIGURE 4
Not Appropiate
Appropiate
FIGURE 5
Page 6
USING POLARIZATION TO
GET NOTICED
Awareness
of corporate
stances
Awareness
of Corporate
Stances
70
This years study found that the public is more aware of corporate
stances on a wide range of issues than in previous years. While last
year the average percentage of adults who had previously heard about
the corporate stances we tested was less than 15 percent, this year
that figure nearly doubled, to 29 percent.
Short of paid advertising, how can a company get noticed for its
stances? Simply put, the higher the polarization score, the more likely
it is to spark awareness. For example, NASCARs Confederate Flag
policy has a much higher level of awareness than Pfizers climate
change initiative. Perhaps the most well-known example of corporate
polarization from recent yearsChick-fil-As position on same-sex
marriagehas an awareness level higher than CVS and the NFL
without the million-dollar ad campaign.
Smoking and Tobacco Use
60
Domestic Violence
The non-polarizing stances with

the highest awareness had major
ad campaigns behind them.
50
Familiarity with stance taken by company
But that 29 percent figure is still quite low. So how do companies

get attention? The two companies withfar and awaythe highest
awareness of their positions were CVS with its ban on the sale of
tobacco products (61% report having knowledge of this position)
and the NFL with its domestic violence prevention campaign
(59% report knowledge). Both companies drove this awareness
with substantial paid media advertising campaigns, which also
generated significant earned media.
Same-sex Marriage (2013)
40
30
20
Minimum Wage
GMOs in Food, Interracial Families, Confederate Flag
Confederate Flag
Highly polarizing stances

also drive high awareness.
Big Game Trophy Hunting

Trump/Immigration
Race Relations
Same-sex Marriage
Parental Leave
Minimum Wage
LGBT Equality
STEM Education
10
Climate Change
Non-polarizing stances with

little paid or earned media
lead to low awareness.
FIGURE 6
RECOMMENDATIONS
FOR CORPORATE
COMMUNICATORS
Certainly corporations take positions on political

and social issues for a number of reasonsnot
always with corporate reputation in mind.
But if well managed from a communications
perspective, taking these standsno matter the
reasoncan provide an opportunity for companies
and organizations to build their reputation with
their audiences.
Page 7
Why are you engaging?
The public finds it most

appropriate
for
companies
to take stands on issues that
are directly relevant to their
business. It is therefore important for a
company to define its reasons, and share
that information and rationale with its
key audiences.
If you are taking a stance on a highly

controversial issue, or if you are
put in the middle of one, you also
need a strong crisis communications plan that
includes scenario planning, internal and external
messages, talking points, and a reactive and
proactive media strategy to handle any potential
negative fallout.
Here are four questions corporate communicators

should be asking as their companies consider
wading in on polarizing issues:
How will you engage?
While people are comfortable with

corporations taking stances on issues,
our study showed they draw the line
at corporations and CEOs endorsing
Presidential candidates, donating company profits
to political parties or candidates or encouraging their
employees to vote for certain candidates.
Are you prepared for multiple

communications scenarios?
When and how will you

communicate your position?
Awareness remains low on most stances that

companies take. Because more people are
getting more comfortable with companies
taking stands on social and economic issues, promoting your
point of view via your social media channelsparticularly
Twitter, Facebook and LinkedInand your website, blogs
or other digital channels is one way to share your position
unfiltered and more broadly. In addition, you can consider
op-eds, advertisements, and traditional media pitches,
to drive awareness and favorability.
Page 8
APPENDIX
GSG POLARIZATION SCORES AND METHODOLOGY

TOTAL
Company
Positive
Brand Impact
Negative
Brand Impact
36
DEMOCRATS
Net Brand Impact
Positive
Brand Impact
Negative
Brand Impact
33
45
26
29
-3
Amazon (Confederate Flag)
20
37
Delta (Big Game Trophy Hunting)
38
Wells Fargo (LGBT Equality)
REPUBLICANS
Net Brand Impact
Positive
Brand Impact
Negative
Brand Impact
Net Brand Impact
Polarization
Score
17
28
25
52
-27
55
33
12
21
19
49
-30
51
-17
30
22
10
53
-43
51
21
17
47
11
36
26
32
-6
42
31
26
38
15
23
20
39
-19
42
32
32
41
23
18
20
44
-24
42
Starbucks (Race Relations)
24
27
-3
33
17
16
12
38
-26
42
Target (Gender Neutral Products)
12
34
-22
15
25
-10
42
-33
23
Netflix (Parental Leave)
46
10
36
51
45
36
13
23
22
McDonalds (Minimum Wage)
24
16
25
10
15
21
23
-2
17
51
45
57
52
42
37
15
Cheerios (Interracial Families)
29
14
15
33
11
22
26
18
14
IKEA (Minimum Wage)
51
43
52
47
46
12
34
13
Chipotle (GMOs in Food)
48
39
51
44
44
11
33
11
LEGO (STEM Education)
36
28
40
32
33
25
Google (Environmental Issues)
31
25
34
29
30
24
43
37
42
35
42
37
33
10
23
32
24
35
12
23
NOTE: The GSG Polarization Score in the chart above is a measure of how much each stance polarized the respondents in our survey. Each stance was evaluated for its Positive
Brand Impact (how much the stance increased a companys favorable rating or reinforced a companys favorable rating among its strong supporters), its Negative Brand
Impact (how much it pushed a companys favorable rating in a negative direction), and its Net Brand Impact (how much the stance decreased a companys favorable rating
or reinforced a companys unfavorable rating among its strong opponents). The table above contains this data among all respondents, by Democrats, and by Republicans. The
GSG Polarization Score represents the difference between the Net Brand Impact among Democrats and Republicans. The higher the score, the more polarizing the stance.
Page 9
APPENDIX CONTINUED
CORPORATE STANCES TESTED IN 2016 SURVEY

Amazon
Amazon has banned the sale of Confederate flag merchandise from its online store by both individual sellers and by Amazon itself. The ban was announced nearly
a week after the mass shooting at an African American church in South Carolina by an alleged white supremacist.
http://www.huffingtonpost.com/2015/06/23/retailers-ban-confederate-flags_n_7648614.html
Apple
Apple CEO Tim Cook, who is openly gay, publicly denounced legislation passed in Indiana and Arkansas that gives individuals and businesses the right to refuse
service to a customer based on their personal religious beliefs. Writing in the Washington Post, Cook called the legislation dangerous because it would allow
people to discriminate against their neighbors. Apple threatened to cease doing business in Indiana, according to Fortune, and has also signed a legal brief in
support of same-sex marriage legalization.
https://www.washingtonpost.com/opinions/pro-discrimination-religious-freedom-laws-are-dangerous-to-america/2015/03/29/bdb4ce9e-d66d-11e4-ba28f2a685dc7f89_story.html
Cheerios
Cheerios developed several commercials featuring an interracial couple and their daughter, one of which debuted during the 2014 Super Bowl. Following the launch of
the advertisements, Cheerios vice president of marketing Camille Gibson, noted, at Cheerios, we know there are many kinds of families and we celebrate them all.
http://www.usatoday.com/story/money/business/2013/06/03/cheerios-general-mills-commercial-mixed-race-ad/2384587/
Chipotle
Chipotle became the first national restaurant chain to completely eliminate genetically modified organisms (GMOs) which are created by inserting genes from
one species of plant or animal into another from its restaurants. Chipotle decided to ban GMOs from its restaurants because it feels that these ingredients are
not raised with care for animals, farmers, and the environment.
http://www.newsmax.com/Health/Health-Wire/restaurant-chains-non-GMO-food/2015/06/09/id/649564/
CVS
Last fall, CVS re-branded itself as CVS Health, and stopped selling cigarettes and other tobacco products in its stores. And just this summer, CVS announced
that it would resign from the U.S. Chamber of Commerce after it was revealed that the chamber was part of a broad lobbying campaign against laws that restrict
tobacco products. CEO Larry Merlo said, Were at the forefront of what we all see as a changing health care landscape.
http://www.cvshealth.com/newsroom/message-larry-merlo
Delta
In the wake of the controversy over big game hunting after an American killed a well-known lion named Cecil while on a hunting trip in Zimbabwe, Delta Airlines
announced that they would no longer transport certain animal trophies on their flights. This makes it harder for big game hunters to bring their prizes home after
hunting trips, and is designed to discourage them from hunting endangered species.
http://www.nytimes.com/2015/08/03/travel/cecil-lion-poaching-hunting-delta-airlines.html?_r=1
Page 10
APPENDIX CONTINUED
CORPORATE STANCES TESTED IN 2016 SURVEY CONTINUED

Google
To address environmental issues facing urban areas, Google launched Sidewalk Labs in June 2015. The independent start-up pursues technologies to cut pollution,
curb energy use, streamline transportation and reduce the cost of city living.
http://blogs.wsj.com/digits/2015/06/11/googles-next-project-fixing-congested-cities/
IKEA
In June, IKEA announced that it would raise the minimum wage for its employees in the U.S. to $10 an hour, and increase salaries for its low pay workers who made
more than $10 an hour, in order to make sure workers could cover living costs. The Swedish furniture company announced that the new policy has produced lower
employee turnover rates, and encouraged better-qualified workers to apply for jobs at the company.
http://money.cnn.com/2015/06/24/news/companies/ikea-minimum-wage-hike/
LEGO
To address consumer demand for more female representation in STEM (science, technology, engineering, and mathematics) fields, LEGO has added more female
minifigures to its newest toy sets, including female deep sea explorers, engineers, mechanics and astronauts.
http://www.businessinsider.com/legos-newest-characters-are-incredibly-important-for-young-girls-2015-6
McDonalds
Amid national protests by fast-food workers calling for increased wages, McDonalds CEO Don Thompson suggested his company would support legislation that
raises the minimum wage to $10.10. In a follow-up statement, spokeswoman Heidi Barker wrote that Thompsons comment reflects our existing position on this
important and evolving issue: an increase in the minimum wage would primarily affect McDonalds independent franchisees, who would have to factor into their
business models the additional expenses and the potential impact on prices and hiring decisions.
http://www.huffingtonpost.com/2014/06/04/mcdonalds-ceo-minimum-wage-hike_n_5445539.html
NASCAR
NASCARs position on allowing the display of the Confederate flag at its events has evolved as CEO Brian France works to distance the sport from what he
said was an offensive and divisive symbol. NASCARs policy prevents the use of the flag in any official capacity, but does not apply to fans flying the flag on
their own at races.
http://www.usatoday.com/story/sports/nascar/2015/06/27/nascar-confederate-flag-infield-brian-france/29404041/
Netflix
In August 2015, Netflix announced it will allow its salaried employees up to one year of paid parental leave after their childs birth or adoption. Current federal law
guarantees 12 weeks of unpaid leave for new parents working at companies with 50 or more employees. Netflix said the new policy was established in order to give
employees the flexibility and confidence to balance the needs of their growing families without worrying about work or finances.
http://money.cnn.com/2015/08/04/technology/netflix-parental-leave/
Page 11
APPENDIX CONTINUED
CORPORATE STANCES TESTED IN 2016 SURVEY CONTINUED

NFL
Since a video surfaced showing former Baltimore Ravens running back Ray Rice knocking his girlfriend unconscious, the NFL has become a leading voice for
domestic violence prevention with its No More advertising campaign. The league has aired commercials on the issue during its games, including the Super Bowl,
encouraged some of the leagues biggest stars to speak out on the issue, and launched a website and non-profit dedicated to ending domestic violence.
http://www.usatoday.com/story/sports/nfl/2014/09/26/psa-anti-domestic-violence-public-service-announcement/16278983/
Pfizer
As part of their commitment to combat climate change, Pfizer has reduced their greenhouse gas emissions by 20 percent since 2000, and has committed to a
60% to 80% reduction by 2050 (from 2000) that scientists indicate is needed on a worldwide basis to stabilize global temperatures. In addition to their
commitment to reduce their environmental footprint, Pfizer is a proud signatory of the UNs Caring for Climate initiative, which commits them to set goals,
develop and expand strategies and practices, and publicly disclose emissions information, in an effort to encourage other corporations to do the same.
http://www.pfizer.com/responsibility/protecting_environment/climate_change
PGA
The Professional Golfers Association of America moved its Grand Slam of Golf from Donald Trumps course in Los Angeles, following Trumps controversial
comments on Mexican immigrants, in which he called some rapists and killers, during his campaign for the Republican nomination for President.
http://abcnews.go.com/Politics/companies-dumped-donald-trump/story?id=32162703
Starbucks
In the wake of recent killings of unarmed black men, Starbucks encouraged its baristas to write Race Together on the cups of coffee they serve and engage
customers in conversations on race. The Seattle-based company hoped that this Race Together initiative would spark a national dialogue about race relations
in the United States.
https://news.starbucks.com/news/what-race-together-means-for-starbucks-partners-and-customers
Target
In response to customer feedback, retail giant Target announced in August 2015 that it will start removing signs that suggest products, including toys and clothes,
based on gender. The company explained its move to gender-neutral store signage as a way to help strike a better balance.
https://corporate.target.com/article/2015/08/gender-based-signs-corporate
Wells Fargo
Wells Fargo became the first U.S. bank to run a national ad that includes a same-sex couple. A company spokesperson said the ad is an expression of our
commitment to the LGBT community at large.
http://www.bizjournals.com/sanfrancisco/blog/2015/06/wells-fargo-gay-ad-backlash-ignore-reality-wfc-jnj.html
METHODOLOGY
Global Strategy Group (GSG) conducted a public opinion survey among 803 adults 18 years and older between October 20 and 23, 2015. The
survey was conducted online recruiting respondents from a leading opt-in online panel vendor. Special care was taken by GSG to ensure that the
demographic composition of our sample matched that of the adult population on a series of demographic variables including age, gender, region,
ethnicity, income, educational attainment, partisan affiliation, and political ideology.
Global StrategyGroup.com
@GSG

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BUSINESS & POLITICS

Business & Politics: Do They Mix?

DO BUSINESS AND POLITICS MIX

by a national audience. But in todays highly politicized environment, how are

Controversy is no stranger to politics. 2015 saw a number of issues polarize

This polarized political environment has created an opportunity for others

Corporations have the power to influence social change

Corporations should take action to address important issues facing society

Business & Politics: Do They Mix?

POLARIZED POLITICS AND

Not surprisingly, of all the stances we tested, the

Big Game Trophy Hunting

Gender Neutral Products

Smoking and Tobacco Use

Negative Brand Impact

With all eyes on the race for the White House,

Positive Brand Impact

Business & Politics: Do They Mix?

response to a big news story (producing a positive brand impact score of

Democrats and Republicans who

Big Game Hunting;

Police Body Cameras

% found type of stance appropriate

Business & Politics: Do They Mix?

VISUALIZING CORPORATE POLARIZATION

NASCAR (Confederate Flag)

Exploring Polarizing Stances

Exploring Non-Polarizing Stances

Pfizer recently committed to a 60% to 80% reduction in their

NASCAR (Confederate Flag)

Pfizer (Climate Change)

Apple (Same-sex Marriage)

Republicans and Democrats are divided

NFL (Domestic Violence)

Republicans and Democrats are aligned

CVS (Smoking and Tobacco Use)

Pfizer (Climate Change)

Business & Politics: Do They Mix?

Smoking and Tobacco Use

The non-polarizing stances with

But that 29 percent figure is still quite low. So how do companies

Same-sex Marriage (2013)

Gender Neutral Products

Highly polarizing stances

Big Game Trophy Hunting

Non-polarizing stances with

Business & Politics: Do They Mix?

Certainly corporations take positions on political

Why are you engaging?

The public finds it most

If you are taking a stance on a highly

Here are four questions corporate communicators

How will you engage?

While people are comfortable with

Are you prepared for multiple

When and how will you

Awareness remains low on most stances that

Business & Politics: Do They Mix?

GSG POLARIZATION SCORES AND METHODOLOGY

Apple (Same-sex Marriage)

Amazon (Confederate Flag)

Delta (Big Game Trophy Hunting)